Kenya has announced plans to sell a 65% share of the state-owned Kenya Pipeline Company (KPC), with Uganda expected to be one of the main buyers. President William Ruto revealed the plan during the groundbreaking ceremony for Devki Group’s $500 million Mega Steel plant in Tororo, Uganda.
The decision follows several high-level discussions between Kenya and Uganda aimed at strengthening regional cooperation and improving the movement of fuel across East Africa. Kenya will keep a 35% share in KPC while opening the rest for Ugandans, Kenyans, and other East Africans to purchase.
The sale comes shortly after a diplomatic disagreement in which Ugandan President Yoweri Museveni complained about delays and barriers in accessing the Indian Ocean through Kenya — a route Uganda depends on for most imports and exports. In 2024, Uganda’s cargo accounted for nearly 66% of all transit goods handled at the Port of Mombasa.
Kenya’s parliament approved the plan on October 2 as part of a wider privatization programme aimed at raising $769 million to ease government financial pressures highlighted by the World Bank. KPC will now be listed on the Nairobi Securities Exchange (NSE), with the initial public offering expected by March 2026.
The two countries also announced new joint infrastructure projects. Kenya and Uganda will co-invest in extending the Eldoret–Kampala petroleum pipeline to Rwanda and the Democratic Republic of Congo. In addition, construction of the Standard Gauge Railway (SGR) extension from Naivasha to Kampala is scheduled to begin in January 2026. These projects are expected to improve trade, reduce transport costs, and strengthen regional integration.
Despite the progress, the privatization effort faces challenges. Several court cases have been filed against Kenya’s Privatization Act, questioning whether the public was properly involved in decisions to sell national assets. These legal disputes could delay the KPC listing.
Kenya is also considering selling stakes in other major state companies, including the National Oil Corporation and even telecommunications giant Safaricom. Reports suggest South Africa’s Vodacom is already in talks to acquire a portion of Safaricom shares.
The move signals Kenya’s commitment to restructuring its economy and deepening cooperation with neighbouring countries, especially Uganda, its biggest regional trading partner.
